Munich International Networking Groups

Special Meeting on FATCA in Munich

Guest Speaker:Ms. Galia Antebi, Corporate and Tax Lawyer, Ruchelman P.L.L.C., an International Taxation and Corporate Law Firm, New York City

The AGBC is sponsoring an open meeting on FATCA (Foreign Accounts Tax Compliance Act), a US reporting law that is specifically applicable to many US citizens residing outside the US and to German companies wanting to make investments in the US. It is a major issue for many of our American members and American friends.

The meeting is targeted for:

1. US citizens having financial assets outside the US in excess of $200,000 ($400,000 if they file jointly with their spouse) where “all financial assets” include not only bank and brokerage accounts but also any other paper assets with a value (e.g. life insurance and related investment programs – including those treated as tax-free in Germany), Riester Rente, special retirement plans, etc.However, it does not apply to Sozialversicherung, non-contributory pension plans, or investments in real property or in physical precious metal.

2. Europeans who handle investments in the US or who help support US citizens residing in Europe on expatriate tax and reporting issues.

As part of the US tax system, all US persons are obligated to file annual income tax returns along with any other supporting documentation to report worldwide income and ownership of certain foreign assets. US persons are defined as citizens of the United States, tax residents and green card

FATCA requires United States persons, including citizens who live outside the United States, to additionally report their financial assets held outside of the United States, and requires foreign financial institutions to report to the Internal Revenue Service (IRS), directly or through the local tax authorities, about their US clients’ accounts, value etc. Congress enacted FATCA to make it more difficult for US taxpayers to conceal assets held in offshore accounts and shell corporations, allowing the US to recoup lost federal tax revenues. FATCA does so by imposing 30% withholding tax on withholdable payments made to foreign financial institutions and certain non-financial foreign entities that do not comply with FATCA obligations.

Ms. Antebi from Ruchelman P.L.L.C. will provide an update on the current FATCA situation and the IGAs (Inter-Governmental Agreements that obligate European financial institutions to provide significant info on US citizens’ overseas financial investments to the IRS).Her presentation, “FATCA and the IGA – How German business, US Citizens, and German Financial Advisors are Affected,” will include a top level review of Form W-8BEN-E for German businesses, Form W-9/W-8BEN for US citizens residing in Germany, and the due diligence process for the financial services sector.

The meeting will be held at the Marriott Hotel, Berlinerstr. 93 on Monday, 3 Nov 14 from 1900-2100 hours. Beverages will be available. AGBC members may attend for free.Other attendees are asked to contribute Eur 15 each to help cover our meeting costs.In addition to the AGBC, several other Munich international organizations will participate, including the AAUPW and International Women’s Club.Space is limited so please send an RSVP by signing up in the Events Tool at www.agbc.de. Or you can send an E-mail to Larry Schulz at lschulzl@aol.com (note the 3 l's in lschulzl).